Molung Hydropower Company IPO Collects Rs. 1.66 Arba From 14.90 Lakh Applicants Till Last Day; IPO Oversubscribed by More Than 7.34 Times

Molung Hydropower Company Limited issued 22,64,655 units of shares worth Rs. 22.64 crores to the general public as a part of their Initial Public Offering (IPO) from 4th Falgun till 10th Falgun, 2079.

Out of the total 27,28,500 units; 10% i.e. 272,850 units were already issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 54,570 units were set aside for the employees of the company and 5% of the total offered shares i.e. 136,425 units were set aside for the mutual funds. The remaining 22,64,655 units were for the general public. The paid-up capital of the company will reach Rs. 80.25 Crores after the IPO issuance.

According to CDSC, 14,90,714 applicants have applied for a total of 1,66,23,220 units worth Rs. 1.66 Arba till the last day. Thus, the IPO was oversubscribed by more than 7.34 times in terms of the number of units through ordinary applicants as of closing day.

Sunrise Capital Limited was appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 8000 units.

Molung Hydropower Company Limited was incorporated on November 28, 2019, as a public limited company, has a paid-up capital of NPR 449.4 million, 100% promoter held, as of mid-Apr 2022. The company is operating a 7MW Molung Khola HPP in Okhaldhunga district, Province 1 of Nepal since March 2018. The project is a run of the river (R-o-R) type and has been developed at a 40% probability of exceedance (Q40) with a design discharge of 8.15m3/s and a gross head of 108.45m. With a contract PLF of 58%, the annual contract energy production is ~36GWh with a dry energy mix of 16%. The project was commissioned on March 26, 2018, a month prior to its Required COD of April 2018, and is eligible for all five tariff escalations.